Life Insurance: Why Do I Need a Medical Exam?

 

When applying for a Greensboro life insurance policy, part of the underwriting process may be for you to submit to a medical exam.  Not all life insurance providers require applicants to undergo a medical exam as part of their underwriting prerequisites and some insurers even offer "no-exam" life insurance issuance.

For a "no-exam" policy, however, you'll be required to pay a greater premium amount than those charged for a standard life insurance policy.  Sometimes the cost can be as much as double.  The reason for the additional cost is because an insurer is taking on additional risk when they write you a policy without knowledge of your health history or your current state of health.  These policies may also have limited coverage options and include a waiting period of up to two years before payment benefits are available.

Getting Greensboro Life Insurance Without Getting a Medical Exam

In line with all types of insurance, the cost of a life insurance policy is proportional to the amount of perceived risk being taken on by the insurer.  The underwriting process your insurer goes through to determine whether a policy should be written and, if so, the amount of premium to charge for a particular policy involves figuring the relative amount of risk being insured.  With life insurance, the purpose of a medical exam is to provide your insurer with an in-depth snapshot of your health status.  

The results of the exam combined with the answers you provide on your insurance policy application should allow your insurer to determine which risk class you fall into.  These classes include:

• Preferred Plus
• Preferred
• Standard
• Substandard

The better your risk class, the healthier you are presumed to be, with a greater life expectancy, translating to lower premiums for your policy.

There are several ways of obtaining a life insurance policy without taking a medical exam and without going the more-expensive "no-exam" route:

Simplified Issue Life Insurance - this includes a health questionnaire that provides a general sense of your health.  The standard upper limit for death benefits on this policy is $500,000.

Guaranteed Acceptance Life Insurance - also known as guaranteed issue or final expense insurance, this policy is often used to pay burial and other end-of-life costs and is typically available limited to $50,000 or less.

Group Life Insurance - typically offered by your employer as part of a benefits package.  Benefits are generally low.

Can You Ever Have Too Much Insurance?

 

Some insurance is essential, but it's important to buy the right types of coverage and the proper amounts.  Some insurance is required by law like vehicle liability coverage, while some protection is required by a lender such as the mortgage lender for your home loan.

Life insurance, which isn't usually required by anybody but highly recommended for everybody who has others depending on their income has two ways of costing too much:

1. Buying a policy with a death benefit that's too large.  The purpose of most life insurance policies is to make sure that, if you suffer a premature death, your family will have enough money to maintain their previous standard of living after covering funeral costs, college tuition for the kids and outstanding loans like those for cars and your home mortgage.  The aim isn't to suddenly make your family wealthy upon your passing, but to maintain their lifestyle.
2. Buying insurance for longer than needed.  Once the kids are out on their own, your home loan is paid off and you've retired, living on retirement income, your life insurance needs will be much different than when you were young with a growing family.

At this point, keeping the same amount of coverage could constitute over insuring yourself.  Contact your Greensboro insurance agent to go over your current life insurance needs.

 Too Much Car Insurance

If you drive a car, you're required by state law to have at least a minimum amount of liability insurance.  When you look at the numbers, 30K/60K/25K, you'll see that these minimum amounts are significantly lower than what you'd need after having a serious "real-world" accident for which you're held legally responsible.  If you have only minimum required amount of liability car insurance, you're likely well underinsured.

If you continue to carry full comprehensive coverage on an older, low-value car, you could be wasting your money.  If you could easily replace the vehicle if it were to be stolen or wrecked, the amount of premium you pay compared to the amount of a settlement may not be that much different.  In that case, you're likely over insured.

Homeowners Coverage

Your Greensboro insurance agent is happy to review your coverages to ensure you're properly covered.  Review your homeowners policy every couple of years to ensure adequate protection.  Protection for your home's structure should cover the cost of rebuilding, not its market value.

Life Insurance: Should I Quit Smoking?

To your Greensboro life insurance provider, the most important concern when underwriting a life insurance policy is if you, the policyholder, are at risk of suffering a premature death.  Risk level is what determines the cost of any insurance policy and, where life insurance is concerned, whatever behaviors you exhibit may play into the formula used to determine whether you qualify for coverage from a particular insurer and at what price.

Following are some of the major factors that figure in to determining life insurance rates.  Some of these are criteria over which you have no control, such as age and gender, while others are lifestyle choices over which you have complete control:

• Age - you have no control over this main factor determining premium rates.  Older people are more at risk of dying sooner.  Young people are more likely to live longer and to pay premiums for a longer period of time.  
• Gender - statistically, females live longer than males and therefore have less risk to insurers of premature death.
• Smoking - any tobacco use, whether cigarettes, cigars, pipes or chew, has been shown to foster numerous health problems.  Smokers can sometimes pay twice as much for their coverage as nonsmokers.  This includes vaping and using nicotine gum, patches and even marijuana.  Quitting smoking not only saves on the cost of life insurance but also on the costs of buying all the smoking materials.
• Health - during most life insurance underwriting, a medical exam is required where certain vital information is recorded such as height, weight, cholesterol level, blood pressure, etc. While "no exam" policies may be available, coverage costs may be higher.
• Lifestyle - any risky pastimes such as motorcycle racing or mountain climbing will likely make a life insurance policy more expensive.  Dangerous occupations such as mining, fishing, or logging may also be considered risky by your Greensboro life insurance policy provider and will add to your cost.
• Family Medical History - if you have a family history (parents/siblings) of serious medical conditions which may have contributed to a premature death, this may factor into higher premium rates.
• Driving Record - insurers may look at your driving record to see if you exhibit any risky driving behavior.

Change What You Can

Not much you can do about several of the above factors, but smoking is something you can stop.  You should.  Save on insurance and prolong your life.

Reconstruction Cost Versus Market Value

When buying homeowners insurance, it's important to make sure you get the correct type and amount of coverage.  While it's not especially common for people to have too much homeowners protection, it's not uncommon at all for them to be underinsured.  In fact, according to current statistics, nearly two out of every three homeowners in America (59%) have homes that are underinsured.  It's been found that the average homeowner today only has enough insurance coverage to pay for 78% of the replacement or reconstruction cost of their home if it was to be destroyed by a covered loss such as a house fire.

Reconstruction Cost Versus Market Value

You may be surprised, as many are, that your homeowners insurance protects your home for a greater amount than you thought the property was worth (market value).  If so, you likely have a more realistic amount of protection than those homeowners who are underinsured, as most are.

"A more realistic amount of protection" means enough coverage to rebuild your home to like or original standards at today's costs for labor and materials within your particular geographical area.  This amount represents the actual reconstruction cost.

Unfortunately, most US homes are insured based on a property's market value rather than their cost of reconstruction.  With today's increasing prices for building materials and labor, it's continually becoming more expensive to rebuild a home than it initially cost.  You also have to factor in changes in building codes that require costly upgrades.

Why Underinsuring is so Common

One major concern with homeowners insurance coverage is that policyholders don't periodically update or increase the coverage on their homes.  Whenever remodeling or home improvements are done to your home, you should call up your agent and revisit your policy's coverage. 

Just the fact that building materials and labor costs continue to increase year over year, that annual or semi-annual update to your homeowners policy becomes imperative to ensure you maintain appropriate coverage on your home in advance of any catastrophe.

Additional (Optional) Coverage

When going over your policy specifics during your annual update, you may want to investigate these additional coverages to bring your policy in line with your reconstruction needs:

• Replacement cost coverage
• Building code/ordinance coverage
• Automatic inflation guard
• Extended replacement cost coverage
• Additional living expense coverage

Most policy holders surveyed report that they have not added or are not sure if they've added these important protections.

Many Thousands of Types of Surety Bonds

 

Surety bonds are contracts entered between three parties:

The principal, the business or individual purchasing the bond in order to guarantee future work performance.

The obligee, the entity requiring the bond.  This is often a government agency regulating industries in an effort to reduce the chance of financial loss. 

The surety, the insurance company backing the bond.  The surety provides a line of credit to be used in case the principal fails to perform in accordance with the terms of the bond and the obligee makes a claim against the bond.

Although it's not insurance as such, a surety bond is a promise and guarantee by one party to underwrite the debt, default or failure of another party.  Surety bonds ensure that services being performed by one entity for another are fully and properly completed.  If not, the party suffering damages due to the service not being completed or being done improperly, may take a claim as the obligee for full compensation within the financial limits of the bond.

How Does It Work?

Regardless of the bond specifics, it is a legal agreement among the three parties as explained above.  The principal is the individual or the business who has promised to provide professional services and is the one who pays for the bond.  The obligee is the individual for whom the service is being provided and the one who suffers if the service is performed improperly or is incomplete.  The surety is the entity who provides compensation to the obligee in the event the principal fails to perform according to the specifics of the bond.

Types of Surety Bonds

Surety bonds can fall into one of three general categories:

Commercial Bonds - used to keep working professionals from either committing fraud or using harmful business practices.  These types of bonds are typically license and permit bonds and are commonly required by the government before issuing licenses and permits.  Some common examples include sales tax bonds, auto dealer bonds and business service bonds.

Contract Bonds - used to ensure contracts are completed according to the terms of the contract.  Commonly used in the construction industry, the three most common types are Bid bonds, Performance bonds and Payment bonds.

Court Bonds - put in place to reduce risks of financial loss to persons pursuing a court action.  

It's estimated that there are more than 50,000 bonds in the U.S.

Preventing Theft While on Vacation

 

Preventing theft while you're on vacation calls for proactive deterrence measures along two avenues:

1. Prevention needed to ensure that your home, property and personal belongings are safe from would-be vandals or thieves wanting to break in, believing your property is unoccupied
2. Preventive steps needed to ensure the safety of your person, your family and your personal belongings during your travels

Home Burglary Protection While on Vacation

According to statistics gathered by the FBI, a home is burglarized in the US every 15 seconds, with an average loss of approximately $2,188 per burglary.  This means there are about 4,800 burglaries every day or 2.5 million per year.

While nearly 50% of all homes in the US are without a security system, statistics show that a home without a security system is three times as likely to suffer a break-in or burglary.  Burglars are known to look for signs of a security system in a property they're considering robbing.  They'd much rather prey on a home without a system and, if a system is apparent, will often move on to a different victim.

This makes an active home security system the number one item for preventing home theft, especially if the alarm is monitored by off-site authorities.  Systems are also available that can notify you personally on your cell phone if your home security system is triggered.  Other theft-deterrence items include:

• Solid wood or steel exterior doors with deadbolt locks.
• Motion-activated sensors on exterior flood lights and cameras.
• Locks on pet doors.
• Hardware installed on garage doors to prevent easy access.
• Windows should be locked and blocked and basement windows have well covers.

Make sure you have comprehensive homeowners insurance protecting your home and personal belongings.  Complete an inventory of your personal belongings.  Include photos and serial numbers.  Some other safety tips for protecting your home while on vacation include:

• Don't publicize your upcoming travel in public or on social media
• Put a halt on your newspaper and mail deliveries or arrange for a trusted friend or neighbor to collect them regularly
• Put an inside light on a timer
• Park your car in the garage and ask a neighbor to park in your drive once in a while
• Make sure your lawn gets trimmed

Preventing Theft on Your Travels

Tips to avoid theft while on your travels are too numerous to list individually here but many can be found here and here.

Do I Need Insurance for My Moped or Scooter?

 

In North Carolina, low-powered vehicles like mopeds, scooters and e-bikes have become more popular lately, especially since the cost of gas has been rising so significantly.  If you're thinking of becoming a convert to this form of two-wheeled transport, you may have questions about the insurance requirements you'll face in order to operate your moped or scooter on North Carolina roads.  You can find answers to those questions here.

Mopeds or Scooter?

In the State of North Carolina, a motorized two-wheeled vehicle with an engine less than 50cc and a top speed of less than 30 mph is legally considered a moped.  A moped usually has pedals, like a bicycle, but not always.  Traditionally, mopeds had pedals, thus the name, which is a combination of motor and pedal.

A scooter, defined as having an engine size of 50cc or greater, is considered a motorcycle but, to be considered a scooter, will have a platform to put your feet.

Moped Requirements

State laws in North Carolina require that all mopeds operated on public, state-maintained roads be registered with the state division of motor vehicles.  They are not required to be titled.

The law also requires these vehicles be covered by at least a minimum amount of liability insurance in amounts as follows:

• $30,000 bodily injury liability coverage per person per accident
• $60,000 bodily injury liability coverage for all persons per accident
• $25,000 damaged property liability coverage per incident

This liability protection is for losses suffered by a third party or parties in an accident deemed to be your fault.  The minimum required amounts are the same as those set for larger scooters or motorcycles and, in the event of an actual accident, especially a seriously damaging one, may be significantly lower than the costs an at-fault rider will face.  You will be personally responsible for any costs above these minimum amounts that your insurance is obligated to cover.  Financial experts generally agree that your liability protection should be considerably more than what's required by law.

Approved motorcycle helmets are required to be worn at all times when riding either a moped or scooter on public roads.  You're required to have a valid driver license on your person when operating your scooter, but a license is not required to operate a moped.  You need only be sixteen years of age, have it registered with NC DMV and display a state-issued license plate.

What Does Golf Cart Insurance Cover

Each U.S. state has its own laws regarding golf carts, including: 

• Who can legally drive them?
• Where they can legally be driven?
• When they can legally be driven?
• What insurance, if any, is required or recommended?

Senior Transport

Golf carts aren't just for use on the golf course.  They can often be seen buzzing around gated communities and are especially favored by seniors for traveling short distances in lieu of walking, particularly when transporting various items.  They can be seen at swap meets where there may be lots of ground to cover or on large properties where distances between buildings may be too great for easy walking for some.

Golf carts may be driven on public roads in North Carolina provided applicable laws are followed.  These include the following:

• Driver must be at least 16 years of age and licensed to operate a motor vehicle in the state.
• A golf cart may only be operated during daylight hours unless fitted with two headlights and two tail lights, in which case it may be driven during any hours.
• Golf carts may only be driven on public secondary roads with posted speed limits of 35 mph or less.
• Golf carts on public roads must be registered with the NC DMV and drivers must have proof of ownership.
• A minimum amount of golf cart insurance (liability coverage) is required and proof of this insurance needs to be carried when you're operating your cart.

NC Golf Cart Insurance 

Golf carts driven on public roads in North Carolina are required by state law to be covered by at least a minimum amount of insurance in the form of liability coverage.  Like requirements for other motor vehicles driven on North Carolina's public roads, minimum golf cart insurance requirements include:

1. Bodily injury liability coverage amounting to $30,000 for one person per accident and $60,000 for all persons per accident
2. Damaged property liability coverage of $25,000 per accident

As with your standard automobile insurance, golf cart coverage is available with a number of options beyond the required liability protection.  These options include:

• Collision - pays toward the cost of repairing your cart if it's damaged in an accident
• Comprehensive - pays toward repairing or replacing your cart if damaged or destroyed in a non-collision loss such as fire, theft or vandalism
• Medical Payments - pays toward medical expenses if you or your passengers are hurt in an accident

 

 

How Do Car Insurance Companies Set Rates?

All types of insurance, including car insurance, involve a transfer of risk between two entities - the insured and the insurer.  As a car insurance policyholder, you're contracted with your insurer for them to underwrite a number of the risks posed by the ownership/operation of your vehicle.  The number of risks being underwritten will partially determine premium rates.  The greater the risks being underwritten, the greater the policy premium costs.

These risks protections may include:

• Liability coverage for bodily injury or death of a third person or persons (legally required coverage in NC)
• Liability coverage for property damage of a third person or persons (legally required coverage in NC) 
• Uninsured motorist coverage (legally required coverage in NC)
• The risk of collision
• The risk of a non-collision loss such as fire, theft, vandalism or severe weather damage
• Personal Injury Protection to help toward the medical costs of your own injuries, regardless of who is found to be at fault

Collision coverage is typically the most expensive portion of a car insurance policy, since the risk of a costly claims payout may be greatest in a serious collision deemed your fault.  This high cost can be reduced by increasing your deductible amount from, say $500 to $2000.  The amount of your policy deductibles is another factor affecting your final policy rate. 

Other Factors Affecting Car Insurance Rates

A broad range of data is used by car insurers to determine rates.  Some factors are more important than others but, taken together, they give underwriters a good idea of what kind of insurance risk you represent to their company.  Consider the following:

• A major rating factor, especially for young drivers, is policyholder age.  The most expensive rates are for teenagers and the least expensive are for those drivers in their 50s.  The reason is because teens have proven to be faster, more reckless and aggressive drivers.  Higher risks equal higher premium costs.
• Driving history - a history of moving violations and/or accident claims are a red flag and will cause higher costs.
• Location plays a role because certain zip codes show higher accident rates and higher risk of theft, vandalism, wildfires or floods.
• Gender - primarily affects young drivers.  Young males are more likely to drive recklessly than females.
• Mileage traveled - more miles driven means higher risk to your insurer.
• Age and value of your vehicle plays a role in rating your insurance.

 

What Does Rideshare Insurance Cover?

 

If you're interested in going to work for a rideshare company such as Uber or Lyft, you should take time to consult your current auto insurance agent to find if there's a rideshare endorsement available for your auto policy.  If you drive for a rideshare company without telling your insurance company and you have an incident for which you file a claim, that claim will likely be denied.  In addition, your auto coverage will probably be canceled.

Standard car coverage does not cover rideshare drivers and if you drive for a company like Uber or Lyft, you'll need to get a special rideshare insurance policy.  While these insurance companies do offer some coverage for their drivers, it's incomplete protection that doesn't cover the entire duration of your trip.

Rideshare Insurance From the Rideshare Company

Rideshare companies break down a rideshare trip into three parts, only two of which are covered by their  provided insurance.

1. Period 1 is when you're logged into your rideshare app and waiting for a ride request.  At this point, you're not being covered by your employer-provided insurance but, since actively on the app waiting for a ride request, you're technically on the clock and not being covered by your personal auto insurance either.
2. Period 2 is when you've received a ride request and are on your way to pick up a customer.  While you're covered by the rideshare company's insurance at this time, it's probably just limited liability coverage such as the minimum required by the state.  This is $50K per person per accident for bodily injury liability, $100K bodily injury liability for all persons per accident and $25K liability for property damage per accident.
3. Period 3 is the time during which you're transporting your passenger.  During Period 3, you have the same coverage as in Period 2.  Once your fare has been dropped off, you revert back to zero coverage as in Period 1. 

Purchasing Additional Coverage

As a rideshare driver you're not legally required to buy extra coverage to provide yourself with full protection but it's a good idea.  The gap that exists when you're not covered, which is when you're logged onto the rideshare app and waiting for a ride request, needs to be addressed.  If you're involved in an accident during this window, you're not covered by your rideshare company's commercial insurance policy or by your personal auto insurance coverage.

Does Homeowners Insurance Cover Debris Removal?

Your Greensboro homeowners insurance policy is designed to protect your financial interests in the event your home is damaged or destroyed by a peril covered in your policy.  This includes such events as fires, wind storms, lightning strikes, hurricanes and much more.  The purpose of the policy is to help fix the damage done to your home or to rebuild the home if it's been destroyed.  The house should be brought back to the condition it was in before the damaging event occurred, within your specific policy dollar limits.  

Debris Left Behind

Certain events that may happen to your home that cause you to file a claim against your homeowners insurance policy may also leave behind debris.  This debris must be cleared away in an effort to get your home back to the condition it was in before the damage event occurred.

An example is a wind storm that topples a tree in your yard that ends up going through your home's roof.  Coverage A (dwelling) benefits in your policy will be the part responsible for paying toward the repair of your home, but the tree debris left behind in your yard may be considered for payment benefits in one of several ways.  Most homeowners insurance policies make some provision for debris removal, but dollar limits may vary depending on your particular insurance company and your policy.  Here are some examples:

• Some homeowners insurance policies contain what's called a "Debris Removal Clause."  This is a special provision in a homeowners insurance policy that allows for debris removal from your property that's the by-product of a loss covered by the policy.  Often this coverage will be limited to an amount equaling a percentage of your full policy value, such as 5% or 10%.  Check your policy wording for specifics.  
• Some policies provide for debris removal based on a fixed dollar amount.  The debris must have been created by a loss covered by the policy.
• Debris removal is often covered in a section of your policy called "additional coverages."  See page 14 of this N.C. Consumer's Guide to Homeowner's Insurance.  You'll also see that this section provides up to $500 for the removal of a tree that's felled in a covered peril if the felled tree damages an insured structure, blocks your home's driveway or exit/entryway of the home designed for handicapped persons.  Pose any questions to your agent. 

Do I Need Uninsured Motorist Coverage?

 

Although you probably carry vehicle insurance coverage as required in North Carolina, you may never expect to be in a car accident, although accidents happen every day here in the Triad Region of N.C.  What's worse than being in a car accident is being in an accident where the other driver is at fault and he or she doesn't have insurance.  This may surprise you: according to the Insurance Information Institute (III), nearly 10% of North Carolina's drivers are driving without vehicle insurance.  

Required By Law

In answer to the question of whether or not you need uninsured motorist coverage (UM), the answer is "YES."  UM is required of all drivers in NC in the same minimum amounts as liability protection, which is also required:

• $30,000 bodily injury protection for one person per accident
• $60,000 bodily injury protection for all persons per accident
• $25,000 property damage per accident

How Much Is Enough?

If you're carrying the mere minimum coverage for either UM or your liability protection, consider what the real costs would be if you were involved in a serious auto accident, your fault or not, $25K may be enough to cover the repairs or replacement of a single vehicle, but maybe not.  Medical costs have shot through the roof in the past few years, including hospital and doctor's costs, not to mention long-term costs for disabilities resulting from a car crash.  There's also lost wages to consider.

Experts suggest that when purchasing your liability coverage and your uninsured motorist coverage that you increase the benefit amounts to several times the minimums required.  Any costs not covered by your uninsured motorists benefits may likely have to come out of your own pocket, although you may be able to claim against your base policy if you have collision protection or medical benefits protection.

When Does Uninsured Motorist Insurance Pay?

Uninsured motorist insurance typically covers the following:

• An accident that's caused by an uninsured driver
• An accident caused by a driver whose insurer has gone bankrupt
• An accident caused by a motorist whose insurance company denies liability
• An accident caused by a driver driving an uninsured vehicle despite having insurance himself

Besides the fact that uninsured motorist and underinsured motorist coverages are required by North Carolina state law, it would still be an important coverage to have in light of the fact that NC has so many uninsured motorists.

Does Business Equipment Insurance Cover Burst Pipes?

 

A good commercial property insurance policy can be comprised of many different types of insurance protection, many of which most businesses need.  Damage caused by leaking or burst water pipes is included in the coverage provided by many commercial property insurance policies, but check your policy to make sure.  Each business policy written is unique and available protections must be spelled out in the policy contract.

Business Owner Policy

A Business Owner Policy, or BOP, is a combination of insurance coverages providing protection for many of the liability and property risks a business owner faces, bundled together in one package.  While a BOP provides a bundle of basic insurance coverages most business owners need, it's sold at a discount from what the individual protections would normally cost. 

Typically, a BOP provides protection against losses stemming from:

• Property damage
• Liability
• Business Interruption

Businesses can also usually opt to add on additional coverages not provided by a basic policy.

Water Damage

While water damage from something like a burst pipe is likely covered by your commercial business property insurance policy, not all water damage to which your business may be subject is necessarily covered.  Flood damage, for example, is something that could possibly require coverage by a separate flood policy or special endorsement to your base policy.  It's also important to realize that if your water pipe bursts because your property was left unheated during a winter freeze your claim could be denied due to neglect.  Water damage caused by an overflowing sump pump will probably not be covered by the property damage portion of you policy.  Check the specifics of your policy.

Other Applicable Coverage

Several types of coverage may apply to damage caused by water from a burst water pipe.  If you have a great deal of expensive equipment used in your business and it gets damaged and requires repair or replacement, the costs may exceed the benefit limits on your property damage coverage.  Additional equipment coverage may be needed to ensure your full protection in the event that property or equipment damage is greater than your base policy can handle.

If water damage sustained requires you to shut down business operations or move them to a temporary location, business insurance can help cover loss of income because of business interruption.  If you're found liable by your landlord for damage done to his or her property a BOP can help there, too.

What Does ATV Insurance Cover?

 

Greensboro ATV insurance, although generally not required by law in North Carolina, is available to ATV owners in similar fashion to motorcycle insurance.  Certain parks or other venues catering to all-terrain vehicles (ATVs) may require riders using their facilities to carry a minimum amount of liability coverage to protect others using those same facilities.  This liability coverage comes in the form of bodily injury protection and personal property protection.

Bodily Injury Liability and Personal Property Liability Coverage

Greensboro ATV insurance is similar to Greensboro motorcycle insurance as far as the various coverages that are available and, for the liability protection, basic minimum amounts are identical.  Liability insurance is protection "for the other guy" when you're involved in an accident where someone suffers a loss and the accident is determined to be your fault or responsibility.  

Minimum amounts of liability coverage include:

• $30K coverage per person per accident for injuries or death.
• $60K coverage for all persons per accident for injuries or death.
• $25K coverage per accident for damaged property, fixed or moveable.

How Much is Enough?

While North Carolina State law sets out minimum amounts of liability coverage required for cars, motorcycles and ATVs, these minimums may be woefully inadequate in the event that you're involved in a serious accident and found liable for someone's injuries, damaged property or death.  Bear in mind that any amount of money for damages not covered by your insurance will have to come out of your own pocket.

Someone seriously injured in an ATV accident could require huge amounts of medical treatments and hospitalization as well as expensive therapies afterwards.  Obviously, $30,000 of insurance coverage could represent a mere drop in the bucket, leaving you with a huge debt that could lead to the loss of your assets and even bankruptcy.  ATVs can be dangerous.  Consider carrying as much liability insurance as you can comfortably afford, or invest in an umbrella policy.

Optional ATV Coverage Available

Just as with other vehicles, there is a menu of optional coverages available for ATVs, including:

• Uninsured/underinsured motorist coverage
• Collision coverage - may be required if your ATV is being financed
• Comprehensive coverage - may be required if your ATV is being financed
• Personal Injury Protection (PIP) - also called medical payments coverage

Though optional coverage isn't required, it's better to have it and not need it than the other way around.

 

Making the Most of Your RV This Spring and Summer

A major factor in making the most of your RV travel this Spring and Summer is proper de-winterization in plenty of time for your first road trip.  Making sure that everything is ship-shape on your vehicle will allow you to enjoy yourself much more than if you have to spend your time worrying about things that might happen or actually having to deal with things that DO happen.  We all know that an ounce of prevention is worth a pound of cure, especially if you find yourself stuck in the middle of nowhere, broken down, with no cell signal and no working jack or spare tire.

Avoid Mechanical Problems Before They Happen

To avoid the no working jack or spare tire problems, simply go through your RV with a list of things that need to be checked before your RV travel to make sure they're covered.  If you're pulling a fifth wheel or travel trailer, many of your RV safety checks will be mechanical since the towing vehicle requires most of the attention to make sure it meets the safety standards that everyday driving require.

Common sense tells you that before going anywhere you should gas up, air up your tires, make sure your battery is charged and that your fluids are topped up.  What may not be so obvious is to check your brakes, your shock absorbers and your axel bearings.  These last items may require service by a professional mechanic, so it's important to get these things done in plenty of time before your departure date.

First Aid Travel Kit

An important item you need to make sure you have on hand during your RV travel is an emergency first aid travel kit.  This should be a collection of items to deal with minor emergencies or illnesses, basic first aid items, medicines for skin problems, for stomach and respiratory problems.

In addition to these important first aid items, you should also have a basic emergency travel kit in your vehicle.  This kit should include, among other things, a flashlight, battery-operated or hand-cranked radio, extra batteries, local maps, pet supplies and basic hand tools.

You'll also want to make sure you have some entertaining activities for the kids if you have any children along on the trip.  This can include books, comics, video games, puzzles, etc.  These items may come in handy during a long drive to overcome the boredom.

 

RV Insurance: What is Personal Attachments Coverage?

Greensboro RV Insurance is similar to standard automobile insurance, with many important features you need if you actually operate your RV on public roads as opposed to keeping it parked and not driving it anywhere.  It's also similar to homeowners insurance in that it provides protection for personal property kept in your vehicle in the same way your home insurance provides protection for the personal belongings kept in your home.  For some, their RV actually is their home and they need to have comprehensive protection from financial loss from any of the many perils to which an RV may be subject.

What's Required for Your RV

Just as with any motor vehicle being driven on North Carolina's public roads, the only vehicle insurance required by state law is a minimum amount of liability coverage that pays benefits to someone suffering injury, death or property damage as the result of an accident you've caused.  Add to this uninsured/underinsured motorist coverage, which pays you if you're the victim of a hit and run accident or involved in an accident caused by someone with either no or insufficient insurance coverage.

Beyond the Required Minimums

It's easy to see that the minimum amounts of liability and uninsured/underinsured RV insurance coverage are significantly less than you'd likely need if involved in a real-world accident with your RV.  These minimums are 30/60/25 per accident, or $30K for a single person injury, $60K for two or more persons injured and $25K for property damage.  The same minimums apply to uninsured/underinsured coverage.  A serious accident where you're found to be at fault would likely require significantly more funds than the minimums provide and experts advise you take out three to five times the minimum amounts of coverage required.  Some say you should carry as much liability protection as you can afford.  An affordable solution is to take out an umbrella policy.

Popular Options to Required RV Coverage

Standard Greensboro RV insurance covers the legally required liability and uninsured motorist coverages and adds some important protection such as:

• Collision insurance
• Comprehensive coverage for losses resulting from other than collisions
• Personal property coverage
• Medical payments coverage

Another optional coverage, unique to RV insurance, is Personal Attachments Coverage.  This is protection against losses relating to the theft, damage or destruction of anything attached to the exterior of your RV and may include:

• Satellite dish
• Bicycle
• Awning
• Cargo carrier
• Outdoor furniture, and more

 

7 Factors That Affect the Cost of Home Insurance

 

Homeowners insurance underwriters have a long list of factors to consider when writing a home insurance policy, all of which go into a formula for determining policy premium costs.  Two of the major factors determining the cost of your home insurance includes the geographic location of your home and how much it would cost to rebuild your home in the event that it's totally destroyed by a covered peril such as an all consuming house fire.

Here is a list of factors that affect the cost of your home insurance:

1.  Location, location, location.  Where your home is located is one of the primary determinants affecting your home insurance premium costs.  In states like Florida or Louisiana, where natural disasters are prevalent, premium costs may be as much as three times as expensive as costs in areas statistically safer from natural disasters such as Oregon or Utah.  Home insurance in North Carolina is the 30th least expensive of the 50 U.S. states.  Other location factors show policies are typically more expensive in urban rather than rural areas and in locations with statistically higher crime rates.
2. Home value and rebuilding costs.  Coverage for repairing or rebuilding your home is a major factor in the price of your home insurance.  Higher priced homes cost more to insure because they generally cost more to repair or rebuild.  These repair/rebuild costs will depend on the size of your home and local construction prices.
3. You'll pay more for more coverage.  Higher levels of coverage bring higher policy premiums.  The value of your personal possessions may be higher than standard policy limits and you may want to raise your limits, making your coverage more expensive.  Liability protection on your policy may be limited to $100K, but experts agree you may want to increase this limit to cover the total amount of your assets.  Consider an umbrella policy for extra protection.  This will add to the cost of your coverage.
4. Age and Condition.  An older home may be more expensive to insure.  Outdated electrical, plumbing and heating/cooling systems may be seen as higher risks by insurers.
5. Your credit history.  Many insurers use your credit history data when underwriting your policy.  Poor credit may mean higher insurance costs.
6. Deductible Amount.  Choosing a higher deductible amount should translate to a lower premium amount.
7. Ask about any discounts available from your insurer such as a bundling discount.  Other discounts may also be available.

What is a Businessowner's Policy?

 

Generally designed to appeal to small and mid-sized businesses, a business owner's policy (BOP) is insurance coverage consisting of several policies combined into one.  The advantage of buying a BOP is that it's a collection of policies protecting a business owner from the various property and liability risks most businesses face and it's sold at a discount from what you'd pay to assemble all the included protections separately.  These may include:

• Property damage or destruction from various named perils
• Liability protection
• Business interruption protection

Although coverage offered may vary from one insurer to the next, you may usually opt to add additional coverage to the basic BOP being offered with:

• Crime protection
• Protection against merchandise spoilage
• Protection against forgery and more

Qualifications 

Individual insurance providers decide if a business qualifies for a BOP, determined by such factors as: 

• Business location
• Size of business location
• Class of business
• Revenue

BOP Requirements

Not every business qualifies for a BOP and each insurance provider has its own requirements.  Many providers, for example, will only consider writing BOPs for companies that handle all their business operations on-premises.  There may also be limitations on business size, with primary business locations required to fall within certain size parameters.  Business classes that typically qualify for a BOP include:

• Apartment buildings
• Retail operations
• Office-based businesses
• Small restaurants

Certain businesses may qualify for what are known as "special considerations," to be determined between the insurer and the insured.  These may include additional coverage for mechanical breakdowns and computers.  BOPs typically do not cover worker's compensation, health insurance or disability insurance.  Coverage for these require separate policies.

Understanding Basic BOP Protections

A breakdown of the three basic protections found in a BOP include:

1. Property Insurance - Similar to homeowners insurance, the property insurance portion of a BOP covers the structure of the business property against losses from a list of named perils such as fire, lightning, explosions, storms, smoke, vehicle or aircraft damage and more.  Coverage also extends to any business-related property found within the covered business.  
2. Business Interruption Insurance - coverage against loss of income caused by a peril covered in the policy that disrupts business operation.  May also include expenses incurred from operating business from a temporary location.
3. Liability Protection - protection against losses from bodily injury or property damage caused by your business during normal business operations.  Could be damage from faulty installations or defective products.

Do You Need Small Business Life Insurance?

 

Anyone with a family, who has people depending on his or her income for their living expenses, needs life insurance to help meet those needs in the event of an untimely death.  Proceeds from a life insurance payoff can be used to replace the income lost when the breadwinner passes away.

If you're a small business owner, business life insurance also has an important place in your financial security plan.  While life insurance needs are unique to everyone, if you own a small business and have a desire to protect both your family members and your business interests should you experience a premature death, you need coverage that protects your concerns from every angle.

An unexpected death can upset the stability of both your family and your business from a financial standpoint.  Preparing beforehand with the right type and amount of life insurance can provide assurance that, should you die prematurely, you'll be able to adequately meet your current financial obligations.

One Policy or More?

If your small business is a sole proprietorship, a personal life insurance policy of adequate amount may be enough to cover your family's needs and your business liabilities after your death.  This may be especially true if the plan is for someone in your family to take over your business.

In most cases, however, it would be prudent to have two separate life insurance policies: one for your family and one for your business.  A business life insurance policy can serve a number of purposes:, such as: 

• Paying back loans that were taken out to get the business started or for later expansion.  Repaying these loans is especially important if personal property such as your house was used as collateral.
• Covering the cost of replacing a key employee, including you, the owner.
• Severance pay for staff in the event the business closes.
• Paying off buy-sell agreements.

Key Man (or Key Woman) Insurance

Key person insurance was specially designed for when the owner or very valuable employee of a business dies and financial support is needed to keep things running until the business can get back on its feet.  The number one salesperson, for example, may be responsible for the majority of business and, if he or she unexpectedly dies, it could take some time to replace that person and business profits may decline significantly during this time.  Insurance money can offer stability during this time.

Is the Bare Minimum Car Insurance Okay?

 

Buying a car can be an expensive prospect, especially when buying a new vehicle, and car payments are just the beginning.  There are also various fees that must be paid, such as the cost for getting the vehicle registered and, of course, the cost of insurance.

When buying your Greensboro car insurance, you'll learn that there are two classifications:

1. Car insurance required by North Carolina law for all vehicles operated on public roads
2. Optional car insurance not required by law but recommended for your protection

Insurance Required By Law

All but a couple of U.S. states mandate a certain amount of car insurance for drivers.  Each state has their own requirements regarding types and minimum amounts of coverage required, but the main focus is for bodily injury liability and property damage liability coverages.  Some states also require protection against uninsured drivers and for Personal Injury Protection (PIP) insurance.

In North Carolina, the legal requirement  is for a minimum of $30,000 per person bodily injury liability protection per accident, $60,000 for all persons in bodily injury liability protection per accident and $25,000 in liability coverage for property damage.  You're also required to have the same dollar amounts ($30K/$60K/$25K) in uninsured/underinsured motorist coverage.

Why Carrying Bare Minimum Car Insurance Is a Bad Idea

Required liability coverage is meant for "the other guy" involved in an accident that you cause.  The money paid out goes to help pay towards injuries and/or property damage sustained as a result of your driving errors.  There are two major problems to consider regarding this "bare minimum" coverage.

1. Your Greensboro car insurance liability coverage does nothing to pay for your injuries or property damage.  To be protected for your own losses in an accident you've caused, you must add certain optional coverage to your insurance policy such as collision coverage, personal injury protection (PIP) or medical  payments coverage.
2. The bodily injury and property damage liability amounts required by law are extremely low compared to actual costs typically seen as a result of an auto accident claim.  If an accident you cause seriously injures a third party and they require significant medical services, charges can amount to tens or hundreds of thousands of dollars.  Multiply this by the number of passengers injured from the other car and you can see how woefully inadequate "bare minimum" coverage is.  Experts suggest you should carry five or ten times the minimum required.

4 Tips for Preventing Small Business Insurance Claims

 

Small business owners are responsible for many things geared toward making their business a success and, as a small business owner, you're responsible not only for increased sales and cost reductions but also for managing risk.  A big part of managing risk is to be covered by a comprehensive small business insurance policy that protects you from suffering a variety of losses, one of which may be liability lawsuits.

Your Greensboro small business insurance policy is absolutely something you want to have but also something you never want to have to use.  Without proper protection, however, a serious claim against your business could essentially close down your complete operation.  But smaller claims such as those for a slip and small injury, which is one of the most common, or theft of merchandise or equipment, are not only troublesome but can cost you money in the form of higher premiums.

Tips for Preventing Small Business Insurance Claims

Here are some things you can use to help prevent small business insurance claims:

1. Burglary and theft are the most frequent causes of property loss claims submitted by small businesses, accounting for about 20% of all claims filed.  The best way to mitigate these losses is to introduce some simple security measures such as sturdy locks for all doors and windows and also for any sensitive areas.  High-quality electronic surveillance equipment can be used to guard your business both during and after business hours.  If your employees make bank deposits, it's a good idea to incorporate the buddy system.  Employee dishonesty can be countered by providing a good working environment and fostering high employee morale.
2. Slip-and-Fall Injuries are some of the most common injuries for which claims are made against small businesses.  The more foot traffic your business has, the more vulnerable you are to facing this liability claim.  Good housekeeping is a primary factor in avoiding these injuries.  Inspect for and repair any loose steps or handrails.  Slippery floors should be well marked and any clutter should be avoided.
3. Other injuries caused by unstable product displays or heavy goods falling from high shelves may be alleviated by regular inspections to prevent these problems.
4. Businesses that use vehicles as part of doing business can be held liable if one of these vehicles becomes the cause of an injury or property damage.  Only qualified persons should operate these vehicles and regular driver training should be provided.  

Is Your Teen Really Ready to Drive? 4 Considerations

 

When your youngster is a teenager and wants to drive, it's important that they understand an important concept.  While driving may be a teen's rite of passage, it shouldn't be considered a right, but rather a privilege, which must be earned.  As a parent, what you want to ask yourself is, at their current stage of development, is your teen ready to take on the responsibility involved with driving.

While age is a primary factor in determining who can drive, it's by no means the only factor.  It doesn't matter if your son or daughter is old enough to drive legally if they're not mature enough and responsible enough to handle what's required to drive a large motorized vehicle capable of causing death and destruction in the wrong hands.

Teen years can be a very challenging time in many ways, including:

• Learning to deal with emotional stress
• Academic stress
• Peer pressure
• Problems with parents

Some teens may be capable of handling the responsibility of driving at age 15, while others may be lacking in necessary judgement even at age 18 and beyond.  As the parent, this is on you to determine, keeping in mind that one of your prime duties is to keep your child safe from harm.

North Carolina Teen Drivers

The State of NC has one of the safest and most comprehensive licensing systems for teen drivers of any state.  It's a three-level graduated system that allows teens aged 15 to get a learner's permit after fulfilling several requirements.  See those requirements here.  Then the teen works his or her way up toward receiving a full provisional license.

Considerations to Help Determine Your Teen's Readiness To Drive

1. Does your teen consciously know what's going on around him and act/react accordingly?  Does he have good peripheral vision and the ability to predict the behavior of others?
2. Driving competency must include the ability to be alert and tuned into one's own surroundings; to be a defensive driver, immediately reacting to all situations involving other drivers' behaviors.
3. How well does your teen follow rules and regulations?  Do they respect authority and keep their word?  A teen who defies authority and can't follow rules might not be ready to take on the responsibility of driving.
4. Does your teen have good manners and a good general attitude?